Moving Forward With Bankruptcy

Posted by on Apr 20, 2013 in Bankruptcy | 4 comments

Despite an average rating of indebtedness, and the fact that debt was due mostly to students loans, a large number of individuals are taking advantage of the bankruptcy system as a means to effectively manage their debt.

Alternatives for debt management

Because of the student debt situation, as well as the detrimental effect on credit ratings, bankruptcy is not the magic bullet one may expect. Before considering filing for bankruptcy, it may be wise to first consult with the local credit counseling agency. There are some credit counseling agencies where knowledgeable and trained counselors will have the tools to assess the financial situation correctly and give valuable advice on how to manage debt.

Counselors may also provide some assistance in negotiating debts with creditors. While this may not help with student loans, getting rid of or managing other debt such as credit card balances will ease the financial burden on the debtor and enable them to remain current on payments.

Deciding to move forward with bankruptcy

If the situation does call for bankruptcy, it is advisable to enlist the services of a bankruptcy attorney to help you with the process. This is especially true for Chapter 7 bankruptcy, where a skilled bankruptcy lawyer can take advantage of the state and federal rules on exemptions to retain possession of many of your assets.

4 Comments

  1. 7-1-2013

    Bankruptcy is often a topic not really addressed clearly. Therefore, I am very glad to see this writeup on here.

  2. 7-2-2013

    Knowing what to do after filing bankruptcy can be one of the hardest things a person can face. This is very helpful.

  3. 11-14-2014

    I really love this style of blog, thanks for writing.

  4. 11-21-2014

    This was interesting!

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